The Punjabi Taliban militant group would now pursue the implementation of Islamic law through peaceful means, it said in a statement.
The decision to end violence was taken after consultation with the Ulema and due to the prevailing situation in Pakistan, Ismatullah Muawiya, Punjabi Taliban Chief said.
However, the group will continue its armed struggle against the "infidel", it said.
The faction, which has a large number of followers, was instrumental in attacks in Pakistan's Punjab and several other areas.
This decision by the Punjabi Taliban comes as a major blow to Tehreek-i-Taliban Pakistan (TTP), especially after a new bloc Jamatul Ahrar recently declared its split from the group.